Carindale Property Trust reports profit of $10.8M
31 July 2000
Carindale Property Trust today announced a profit of $10.8million for the year to 30 June 2000, substantially up on lastyear’s profit of $2.5 million. This result reflects the first fullyear of trading for the Carindale shopping centre following anextensive redevelopment, which was completed in May 1999.
Earnings per unit are 15.44 cents up from 3.56 cents per unitlast year.
The total distribution for the year is 15.44 cents per unit, ofwhich 95.6% is tax advantaged. This compares to 8.02 cents per unitlast year, which included a capital distribution of 4.46 cents perunit.
The final distribution of 7.93 cents per unit will be paid on 31August 2000.
In an announcement on 3 June 1999 the Suncorp Metway Group, theprevious manager of the Trust, in recognising the difficultiesassociated with the redevelopment of the centre, made a commitmentto unit holders that they would receive a total payment of 19.0cents per unit for the year ended 30 June 2000. Accordingly, unitholders will receive an additional payment from Suncorp of 3.56cents per unit.
Net tangible asset backing was $2.62 per unit as at 30 June2000.
Retail sales within the centre increased by 40% over the year,the first full year of trading since the major redevelopment wascompleted, to $364 million.
During the first half of the year the Westfield Group wasappointed manager of the shopping centre. Following a unit holders’meeting in December 1999, 50% of units were redeemed and the samenumber of new units were issued to Westfield Trust. Concurrently,the Trust changed its name to Carindale Property Trust (formerlySuncorp Property Trust).
On 29 June 2000, Carindale Property Trust was registered as amanaged investment scheme under the requirements of the ManagedInvestments Act, with Carindale Management Limited assuming therole of Responsible Entity of the Trust.
Rental growth in the short term is likely to be affected byfactors relating to the redevelopment which are prolonging thestabilisation of the centre’s income. Nevertheless, the long termoutlook for the shopping centre remains positive.